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Chameleon (KARMA)

KARMA is a crucial SORA ecosystem token created to incentivize liquidity providers and maintain the stability of the Chameleon pools on Polkaswap. By offering KARMA rewards to liquidity providers, the token ensures the health and growth of these pools, thus playing a vital role in promoting liquidity and stability within the SORA ecosystem.

Purpose and Incentives

The KARMA token is used to provide farming rewards to liquidity providers in the XOR-ETH pool on Polkaswap.

By participating in liquidity provision for this pool, users are rewarded with KARMA, encouraging more liquidity in the Chameleon pools.

Minting and Burning Mechanism

For each Kensetsu XOR (KXOR) minted from collateralized deposits, an additional 1% of KXOR is minted specifically to buy back and burn KARMA tokens.

This buy-back-and-burn mechanism helps regulate the KARMA supply, supporting its value.

Redistribution and Farming Rewards

80% of the KARMA tokens that are bought back and burned will be reminted and distributed to the Demeter farm.

These reminted KARMA tokens are then used as farming rewards for liquidity providers in the Chameleon pools, initially focusing on the XOR-ETH pool on Polkaswap.

Deflationary Aspect

KARMA also has a deflationary mechanism. During the initial mint, which ended on June 6th, for every 10 million XOR burned, 1 KARMA token was minted.

After this initial minting, the KARMA token becomes deflationary, with 1% of minted KXOR used to buy back and burn KARMA tokens.

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